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r,. F!M July 16, 2020 To: Mayor and City Cduncil From: Tom Kelly, Treasurer CITY OF GEM LAKE, MN 4200 Otter Lake Road Gem Lake, Minnesota 55110 RE: 2021 Preliminary Budget & Property Tax Levy.. Sigw,$tatnes require Cities to certify their preliminary property tax levies by September 30" this year. Once the preliminary propeity.tax levy is approved and certified to the. County Auditor, the city can lower the levy during the remaining budget process but cannot exceed the certified preliminaryIevy, For this reasoli, most Cities certify a preliminary levy using worst -case budget: scenarios, which is the case with the Mayor's 2021 preliminary property levy and budget, The2021 preliminary property tax levyis:propose.d at.$542,491, which is a 7.56%:decrease over 2020 certified preliminary property tax levy. The 202 1. preliminary property tax levy conststs of a debt levy of $8$,8I6.00 (a decrease frorn.2020-preliminary debt levy. of $1,125,00) andthe general operating levy of $453,675.00 (a decrease of 8.706%over 2020 preliminaiy tax levy). The following changes were made from the:2QZQ adopted budget as a basis for. the 2021 proposed preliminary property tax levy: 1; Based on the.2015-Rd4nding Bond schedule the :debtvjevy for 2021 is set for $80,876.06. 14 addition, in.2018, the City issued bonds for the improvements on Scl eunieirian Road. and the 2021 debt -levy .for this issue is $7,940. The two of these delft le'yies makes up the Uty's 2021 debt -levy of $&8,816. 2. Licenses andPermits:decreased $1,450 for less building activity. 3. City Council con'tiiigency was left. at $10,000. 4. Police budget was increased 10.0% to-.$88;589. The City ofVhi* Bear Lake has not set their budget as of today. 5. The cost of fire services could increase 10.00/6. to $27,770.00. :6. Building Inspcotions activity i being decreased to $37,779 for less building act.M.. btlt:stilI includes the part-time inspector t help with building activities that was included in 14 2019 and 2020 budget. 7. Road Maintenance budgei*Wc1udes $8,000 for trimming boulevard trees. 8. $Altlsand remain at $17,000 and snow plowing contract decreased from. $20,000 to $18,OW 9. Included a park maintenance budget -of $51000 :for maintaining park area of the Villas of Getn Lake. 10.. The 2021 budget does not -include the $30,000 to construct a: sidewalk/pathway along Cpun4y RoadE. 11. The 2020 budget includes $25,00U,00 for. future improvements. Look for us on the World Wide Wets at gemlakemn.org